Valero loses $254 million on lack of demand

That’s nearly a $1 billion swing from the $734 million it earned in the second quarter last year. Revenue fell 51 percent to $17.9 billion from last year.

“This is a very challenging environment for sour crude oil refiners,” Bill Klesse, chairman and CEO, said in a release. “The downturn in the global economy has sharply reduced demand for refined products at a time when new refining capacity is coming online around the world.”

Before its earnings announcement came out, Valero said it was likely to lose about 50 cents per share. At the time, experts were expecting the company to earn about 74 cents per share.

While he had the public’s attention, Klesse addressed the American Clean Energy and Security Act of 2009. Valero has set up a Web site for concerned citizens.

“We recognize the concerns about climate change and increasing carbon dioxide levels,” he said in a release. “However, a hidden tax imposed by this legislation in the form of a cap-and-trade system on hydrocarbons will significantly raise the consumer price of gasoline and other fuels, and more than a million high-paying jobs will disappear from our already weakened economy – with no measurable improvement in global climate change.”